8 Essential Things You Need to Know About Aircraft Renters Insurance
New aircraft owners and pilots cannot assume that aircraft renters insurance is included with flight school training or Fixed Based Operator (FBO) status. In fact, flight schools and airport authorities provide insurance to protect their aircraft and interests, not their students or renters.
Continue reading to discover eight critical things you need to know about aircraft renters insurance and how the right non-owned aircraft policy can protect you from significant liability risks and financial exposure associated with owning, operating, and renting an aircraft.
1. Why You Need Aircraft Renters Insurance Protection
Flying airplanes comes with inherent risks that require proper insurance protection. Airport owners and facilities that rent planes to pilots do not always provide adequate insurance coverage for renters. A typical flight school insurance policy may have physical damage coverage for their aircraft fleet, however it is very common for their policies to have high deductibles ranging from $5,000 to $25,000 or more. Most flight schools will require aircraft renters insurance, including both liability and physical damage coverage up to the limit of their policy deductibles, before allowing you to rent their aircraft.
It is not uncommon for an aircraft owner to pay a claim for damages caused by the student pilot but then sue the pilot for reimbursement of the damages. Therefore, it is wise to have a non-owned aviation renters insurance policy in place to cover yourself, your passengers, the rented aircraft, and anyone or anything else that may be damaged in the incident.
2. Why Aircraft Renters Insurance Is Important
Here are some examples of reasons why a pilot would need non-owned aircraft insurance:
- When flying an aircraft even if the aircraft owner is present (as a secondary policy)
- If the pilot is an FBO providing flight instruction in an owner’s aircraft
- If the pilot is a student taking flying lessons in an owner’s aircraft
- If a pilot is delivering an aircraft for someone else
- When borrowing or renting someone else’s plane
3. Aircraft Renters Insurance is Surprisingly Affordable
Non-owned aircraft insurance policies are straightforward, easy to understand, and remarkably budget-friendly compared to aircraft ownership insurance. Pilots renting aircraft from flight schools, flying clubs, and other aircraft rental facilities can easily find comprehensive coverage that meets their specific requirements and exact policy needs.
Aircraft renters insurance policies from BWI Fly include standard aircraft liability coverage, aircraft physical damage coverage, and hull coverage at competitive rates. Aircraft liability coverage starts at $250,000 per occurrence with passenger coverage limited to $25,000 per passenger. Aircraft physical damage coverage can be customized and added to your renters insurance policy in amounts between $5,000 and $200,000, depending on the value of aircraft you plan to rent.
To find coverage that meets your needs, you can get a non-owned aircraft insurance quote by simply completing the price quote form on BWI Fly’s website.
4. Non-Owned Aircraft Insurance Coverages
Typical aircraft renters insurance covers pilots with these required protections against damages:
- Property damage liability covers damage to other persons’ property, but not damage to the aircraft rental.
- Bodily injury liability covers injury to aircraft passengers and bystanders caused by an accident. If a pilot is sued, bodily injury liability also covers legal fees incurred in defense of covered claims.
- Aircraft damage liability (ADL) is also known as hull coverage and covers damage to an aircraft itself.
5. Types of Aircraft Damage Liability
There are three types of optional aircraft damage liability that non-owned aircraft insurance covers:
- Ground and flight liability covers any type of hazard to a plane, including disappearance, that is not included in the general policy. The aircraft can be located anywhere and still be covered.
- Not in flight liability covers damage to a plane when it is on the ground, whether it is parked or moving.
- Not in motion liability covers damage to an aircraft while on the ground and not moving.
6. Aircraft Renters Insurance Requirements for Flying Clubs
A flying club is a member-owned organization run by pilots who share aircraft ownership costs and responsibilities. A major draw of flying clubs is that they help defray the high costs of aircraft ownership by providing pilots with group benefits such as shared insurance coverage and reduced operating expenses. Before joining any flying club, be sure to thoroughly understand what types of insurance coverage the club provides and whether individual pilots are required to purchase additional renters insurance coverage.
Some flying clubs mandate that their members maintain individual aircraft renters insurance policies as a membership requirement, while other clubs include comprehensive insurance coverage as part of their group policy, with costs built into membership fees or hourly aircraft rental rates. Understanding your club’s insurance requirements is essential before your first flight.
7. How Much Aircraft Renters Insurance Do You Need?
While renting an aircraft, basic legal liability protects pilots against bodily injury and property damage claims. Since damages to the rented aircraft are not included in legal liability coverage, physical damage coverage to the rented aircraft is available for non-owned planes. Most insurers recommend purchasing the highest amount of legal liability coverage that pilots can afford.
Physical damage coverage will depend on the agreed value of the aircraft and the specifics of the rental agreement. Aircraft repair can be costly, so physical damage coverage is highly recommended.
8. How To Keep Aircraft Renters Insurance Expenses Down
Aircraft renters insurance requires that pilots pay a deductible to the owner of the plane or the rental facility in the event of an accident. A deductible is an out-of-pocket expense and can be costly based on the amount set by your policy. Deductibles must be paid regardless of who is at fault.
Key Takeaways for Aircraft Renters Insurance
Finding the right non-owned aircraft renters insurance policy can be challenging without proper guidance on coverage requirements. Remember that aircraft renters insurance premiums and coverage options will vary based on several critical factors:
- The size, type, and value of aircraft you plan to rent
- The number of passengers you typically carry
- Your total pilot flight hours and experience level
- Your training certifications and endorsements
- The geographic areas where you plan to fly
BWI offers the best overall aviation insurance in 2022 as rated by Investopedia and is consistently ranked as one of the nation’s top aircraft renters insurance providers. Our experienced aviation insurance specialists understand the unique needs of pilots and can help you find comprehensive, affordable coverage.
Don’t fly unprotected – secure your aircraft renters insurance policy today. BWI’s renters insurance is affordable, provides comprehensive coverage, and can be set up quickly online or over the phone, so you can take off with complete peace of mind knowing you’re properly protected.
Why Shop for Aircraft Insurance at BWI Aviation Insurance Agency?
There are a lot of variables and factors in obtaining aircraft insurance, particularly when deciding how much coverage fits your bill. Before settling on a best-fit figure, you must select the appropriate aircraft coverage type, factor in your flight hours, aircraft type, and passenger load. This is hectic even when you have time.
At BWI, we understand the complexity of shopping for aircraft insurance, which is why we simplify and streamline the entire process for our customers. When your trust us to provide you with aircraft insurance, you’ll get low rates, fast quotes, and coverage you can always count on.
Call 800.666.4359 today for a free Airplane Insurance Quote or Click Here to submit a quote request online.
BWI is the Nation’s Leader in Aviation Insurance, with offices based in Corona, CA and Anchorage, AK.
Continue Reading
